BOARD MEMBER NOT PAYING QUARTERLY DUES

Started by ShannonD • 10 replies • 1932 views

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ShannonD (Florida)
Posts: 1

Posted:

I PRESENTLY SIT AS THE MEMBER AT LARGE ON OUR BOARD. OUR PRESIDENT IS NOT PAYING THE QUARTERLY DUES AND HAS RACKED UP QUITE A SUM OF MONEY. IN THE STATE OF FLORIDA, OUR ATTORNEY TELLS US THAT THERE IS NO LAW IN PLACE TO REMOVE THIS PERSON FROM THE BOARD. I FEEL THAT AS BOARD MEMBERS WE CAN BE SEEN AS "SELECTIVE INFORCEMENT" OF THESE OVERDUE FEES. WHY SHOULD OUR PRESIDENT NOT BE PLACED IN COLLECTION WITH THE ATTORNEY, AND MADE TO STEP ASIDE FROM THE POSITION. ANY SUGGESTIONS ARE WELCOME, PLEASE.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Shannon,

Have you thoroughly researched your gov. docs. Many HOA bylaws state a board member who is in violation of the gov. docs. can be removed from the board. If your docs are silent on this, can't the board at least remove him as Pres? There may not be a state law addressing this issue, but you don't need a state law to recall a board member. I think your lawyer is remiss in not suggesting he be recalled. Board members who violate the rules set a bad example; when it's the Pres. it's even worse!

Now, why can't he be sent letters of delinquency and given fines? He's only one member of the board. In fact the board shouldn't have to be consulted to send out delinquency notices; they should be sent automatically by the treasurer or prop. mgr. If he doesn't pay then he should be subjected to the same collection policy as any other member of the assn.

RogerB (Colorado)
Posts: 5,067

Posted:

Shannon, when the President is a homeowner they need to be treated exactly the same as any other homeowner when it comes to collecting delinquent assessments and enforcing Covenant violations.

Refer to your By-laws, and State statutes when applicable, for the procedures related to removal of an officer from office. Usually the Board can replace an officer but not remove them from the Board. Also your By-laws should state whether or not a delinquent Board member may vote.

HaroldS (Arizona)
Posts: 906

Posted:

How can this person and the rest of your board have the gall to sit in judgment of other members? Obviously you think this is wrong. What is the position of the rest of the board members? Does your documents require being "a member in good standing" to serve on the board? Is your attorney in this president's hip pocket?

DonnaS (Tennessee)
Posts: 5,671

Posted:

Shannon,

There is only one Statutes that pertains to this guy right now. After July 1st, Gov. Crist will hopefully sign the new bill that prohibits any member who is delinquent in assessments, from being a Board member. But for right now, all we have is the following. This is NOT a "selective enforcement issue. This is bad collecting procedures or failure to do so.

720.305 Obligations of members; remedies at law or in equity; levy of fines and suspension of use rights; failure to fill sufficient number of vacancies on board of directors to constitute a quorum; appointment of receiver upon petition of any member.--

(c) Any director or officer of an association who willfully and knowingly fails to comply with these provisions; and

((3) If the governing documents so provide, an association may suspend the voting rights of a member for the nonpayment of regular annual assessments that are delinquent in excess of 90 days.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Donna,

Doesn't that new law only apply to Condos?

However, even without the law, Shannon's docs may have a provision stating a board member is automatically removed from a board position if delinquent in payment of assessments. This is common in many assn docs. Shannon has not informed us of whether or not her docs have such a provision.

BradP (Kansas)
Posts: 2,640

Posted:

Shannon:

Your documents should allow you to remove him from the office of President, which if he is that far behind and refused to pay up should be done immediately. Your board needs to show some toughness and confront him about the situation and demand he pay up. If you don't and he doesn't then the board IMO is hypocritical in any enforcement and dues collection they do.

PaulaM (Florida)
Posts: 7

Posted:

Shannon
Please check your docs, I am fairly sure there is somthing in there banning the board member

DonnaS (Tennessee)
Posts: 5,671

Posted:

Hi Mary,
Yes that is in the Condo proposals but it is included for HOA's also. Finally we are getting somewhere, even tho I am so far removed, I still have the 2 rental properties and I watch them very carefully.
Do we know if Shannon is a HOA or Condo?

EllenS1 (Florida)
Posts: 1,148

Posted:

It sounds like this atorney doesn't know what he's talking about. Our docs say a board member can be removed with or without cause. But your situation is more serious and (1) I would go to an attorney who knows what he/she is taling about and (2) contact the Florida Statute that deals with this.

SusanW1 (Michigan)
Posts: 5,202

Posted:

If your HOA bylaws say that you also follow Roberts Rules of Order, you can call a disciplinary hearing (See Chapter XX in the latest edition 10th or RONR).

Surely, this officer needs to be sanctioned for not being a good role model for the rest of the members. This is reason to remove him as president and/or from the board.

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